Hertfordshire contractor files administration notice

A Hertfordshire contractor has filed a notice of intent to appoint an administrator, despite posting an improved set of annual figures less than a year ago.

Stevenage contractor ARJ Construction saw pre-tax profit rise 11% to £2.8m on revenue up 61% to £117m in the year to April 2023.

But the hikes masked a fall in pre-tax margin which slumped from 3.5% to 2.4%, according to the accounts filed at Companies House at the end of last July.

It said had “performed consistently” in the financial year “despite increasing inflation and labour challenges”.

In the accounts, the firm, which was set up 1991, said its focus was on the residential market and “specifically on partnerships with leading G15 housing associations”.

It said it would “prioritise securing high value, low risk residential projects with average durations spanning 18 to 30 months”.

It said its order book stood at £280m which included an affordable housing scheme in Hemel Hempstead and a care homes project in Northamptonshire.

At its last year-end for April 2023, the firm had 136 people on its books.

Yesterday, Geoffrey Osborne formally appointed RSM as administrator of the business bringing to an end nearly 60 years of trading. Around 100 people have been made redundant.